February 23, 2024

Krispy Kreme Reports Fourth Quarter and Full Year 2023 Financial Results

Fourth quarter Net Revenue growth of 11.4% with Organic Revenue growth of 13.2%

GAAP Net Income of $1.9 million and Adjusted EBITDA margin improvement of 40 basis points

Introduces 2024 guidance

Contacts

Krispy Kreme, Inc. (NASDAQ: DNUT) (“Krispy Kreme”, “KKI”, or the “Company”) today reported financial results for the fourth quarter and full year ended December 31, 2023.

Fourth Quarter Highlights (vs Q4 2022)

  • Net revenue grew 11.4% to $450.9 million
  • Organic revenue grew 13.2% to $446.0 million
  • GAAP net income of $1.9 million
  • GAAP net income attributable to KKI of $2.6 million
  • Adjusted EBITDA increased 14.7% to $64.1 million
  • Adjusted EBITDA margins improved 40 basis points to 14.2%
  • Global Points of Access increased 2,310, or 19.5% to 14,147

“We reported strong double-digit fourth quarter and full-year organic revenue growth in excess of our guide,” said Josh Charlesworth, CEO. “Our growth was driven by strong consumer demand in all sales channels and increased access to our fresh doughnuts around the world. We improved profitability as we grew, showing the productivity benefits of our unique Hub and Spoke operating model.”

Josh continued, “Moving forward, we are modernizing the making and moving of doughnuts to ensure high quality, profitable growth. We are largely supplying expansion from existing capacity whilst making selective investments in geographies which have limited access to Krispy Kreme. This reflects our confidence in further scaling the Delivered Fresh Daily network in new channels, including Quick Service Restaurants. I look forward to us building a bigger and better Krispy Kreme.”

Financial Highlights

 

Quarter Ended

 

Fiscal Years Ended

$ in millions, except per share data

 

December 31,

2023

 

January 1,

2023

 

Change

 

December 31,

2023

 

January 1,

2023

 

Change

GAAP:

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue

 

$

450.9

 

 

$

404.6

 

 

 

11.4%

 

$

1,686.1

 

 

$

1,529.9

 

 

 

10.2%

Operating (loss)/income

 

$

(5.3

)

 

$

5.2

 

 

nm

 

$

13.1

 

 

$

29.0

 

 

 

(54.6)%

Operating (loss)/income margin

 

 

(1.2

)%

 

 

1.3

%

 

(250) bps

 

 

0.8

%

 

 

1.9

%

 

(110) bps

Net income/(loss)

 

$

1.9

 

 

$

(1.0

)

 

nm

 

$

(36.6

)

 

$

(8.8

)

 

nm

Net income/(loss) attributable to KKI

 

$

2.6

 

 

$

(2.7

)

 

nm

 

$

(37.9

)

 

$

(15.6

)

 

nm

Diluted income/(loss) per share

 

$

0.02

 

 

$

(0.02

)

 

$

0.04

 

$

(0.23

)

 

$

(0.10

)

 

$

(0.13)

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP:

 

 

 

 

 

 

 

 

 

 

 

 

Organic revenue(1)

 

$

446.0

 

 

$

394.0

 

 

 

13.2%

 

$

1,675.6

 

 

$

1,494.0

 

 

 

12.2%

Adjusted net income, diluted(1)

 

$

15.1

 

 

$

18.6

 

 

 

(18.8)%

 

$

46.2

 

 

$

49.6

 

 

 

(6.9)%

Adjusted EBITDA(1)

 

$

64.1

 

 

$

55.9

 

 

 

14.7%

 

$

211.6

 

 

$

190.7

 

 

 

11.0%

Adjusted EBITDA margin(1)

 

 

14.2

%

 

 

13.8

%

 

40 bps

 

 

12.6

%

 

 

12.5

%

 

10 bps

Adjusted diluted EPS(1)

 

$

0.09

 

 

$

0.11

 

 

$

(0.02)

 

$

0.27

 

 

$

0.29

 

 

$

(0.02)

 

Notes:

(1) Non-GAAP figures – please refer to Reconciliation of Non-GAAP Financial Measures.

 
 

Key Operating Metrics

 

Fiscal Years Ended

$ in millions

 

December 31, 2023

 

January 1, 2023

 

Change

Global Points of Access

 

 

14,147

 

 

 

11,837

 

 

19.5%

Sales per Hub (U.S.) TTM

 

$

4.9

 

 

$

4.5

 

 

8.9%

Sales per Hub (International) TTM

 

$

10.0

 

 

$

10.1

 

 

(1.0)%

Ecommerce as a Percent of Retail Sales

 

 

19.3

%

 

 

18.0

%

 

130 bps

 

Fourth Quarter 2023 Consolidated Results (vs Q4 2022)

Krispy Kreme’s fourth quarter results reflect continued year-over-year growth as compared to the fourth quarter of 2022. Net revenue grew 11.4% to $450.9 million, compared to $404.6 million. GAAP net income was $1.9 million, compared to a loss in the prior year of $1.0 million. GAAP Diluted EPS was $0.02, an improvement of $0.04 from the same quarter last year.

Total company organic revenue grew 13.2%, driven by high impact global brand activations and seasonal offerings, increased Points of Access and premiumization efforts. Ecommerce as a percent of retail sales increased 130 basis points to 19.3% of sales.

Adjusted EBITDA in the quarter grew 14.7% to $64.1 million, with Adjusted EBITDA margins expanding 40 basis points to 14.2%. Adjusted Net Income, diluted declined 18.8% to $15.1 million in the quarter. Adjusted Diluted EPS declined $0.02 to $0.09 from $0.11 in the same quarter last year, due to increased depreciation and amortization, as we expanded availability of our doughnuts and Insomnia Cookies globally.

Full Year 2023 Consolidated Results (vs FY 2022)

Krispy Kreme’s full year results reflect continued growth, as net revenue grew 10.2% to $1.7 billion in 2023, compared to $1.5 billion in the prior year. GAAP net loss was $36.6 million, compared to a loss of $8.8 million. GAAP Diluted Loss per Share was $0.23 compared to a loss of $0.10.

Total company organic revenue grew 12.2% for the year, driven by strong marketing activations, POA growth, and pricing actions. Adjusted EBITDA grew 11.0% to $211.6 million. Adjusted Net Income, diluted declined to $46.2 million from $49.6 million in the prior period. Adjusted diluted EPS declined $0.02 to $0.27 from $0.29 in the prior year, due to increased depreciation and amortization, as we invested in our global expansion, including Insomnia Cookies’ international development, as well as higher tax rates as a greater portion of earnings came from higher tax rate jurisdictions.

Diluted weighted average common shares outstanding for the full year 2023 were 170.5 million, compared to 169.5 million for the full year 2022.

Fourth Quarter 2023 Segment Results (vs Q4 2022)

U.S.: In the U.S. segment, net revenue grew $25.2 million, or 9.3% with organic revenue growth of 13.7%. Organic revenue growth was driven by successful marketing activations including specialty offerings and seasonal events, the continued expansion of our DFD strategy, and 16.3% organic growth at Insomnia Cookies. Sales per hub in the U.S. increased 8.9% to $4.9 million and DFD average sales per door per week increased 8.0% to $665, driven by continued premiumization efforts and a significant increase in DFD door count year over year. Ecommerce as a percentage of U.S. Fresh retail doughnut sales increased 320 basis points to 15.9%.

U.S. Adjusted EBITDA increased 19.4% to $42.1 million with Adjusted EBITDA margin expansion of 120 basis points to 14.2%, driven by the productivity benefits of our hub and spoke model, labor optimization, and waste mitigation.

International: In the International segment, net revenue grew $14.1 million, or 15.2%. International organic revenue grew 9.0%, driven by POA growth of 686, or nearly 20%, and continued premiumization efforts.

International Adjusted EBITDA grew 7.8% to $22.1 million with adjusted EBITDA margin declining approximately 140 basis points, as strength in Australia was offset by lower volume in the U.K. leading to deleveraging throughout the statement of operations.

Market Development: In the Market Development segment, net revenue grew $7.0 million, or 17.2%. Organic growth in the segment was 19.2%, driven by strong organic growth in Canada and our International Franchise businesses, led by Turkey, South Korea, and the Philippines. Additionally, Krispy Kreme opened in both France and Ecuador during the quarter.

Market Development Adjusted EBITDA grew 21.1% to $16.9 million. Adjusted EBITDA margins expanded 120 basis points to 35.4%, driven by the expansion of our hub and spoke model in Japan and Canada.

Balance Sheet and Capital Expenditures

During the fourth quarter 2023, the Company invested $32.8 million in capital expenditures, driven primarily by investments in the growth of our Hub and Spoke model alongside selective remodeling activity and investments in information technology capabilities. For the full year 2023, capital expenditures as a percentage of revenue were 7.2%.

In 2023, the Company generated operating cash flow of $45.5 million, while reducing the use of vendor finance programs by $81.7 million.

As of December 31, 2023 the Company has total available liquidity of $197.2 million, including $38.2 million of cash and cash equivalents as well as undrawn capacity of roughly $159.0 million under available credit facilities. In 2023, the Company extended maturities of its primary debt facility to 2028 and as of December 31, 2023 has a net debt of $857.4 million.

2024 Financial Outlook

Krispy Kreme issues the following guidance for the full year 2024 (vs FY2023)

  • Net Revenue growth of +5% to +7%
  • Organic Revenue growth of +6% to +8%
  • Adjusted EBITDA growth of +8% to +11%
  • Adjusted Diluted EPS of $0.27 to $0.31
  • Income Tax rate between 26% and 28%
  • Capital Expenditures of 7% to 8% of net revenue
  • Interest Expense, net of $55 million to $65 million

The above guidance assumes nominal impact from foreign exchange. The Company continues to expect to reduce its net leverage in 2024, as we make progress towards our 2026 goal of approximately 2.0x to 2.5x net leverage.

On October 3, 2023, the Company announced it is exploring strategic alternatives for Insomnia Cookies. Guidance for the full year 2024 includes operations from Insomnia Cookies.

Definitions

The following definitions apply to terms used throughout this press release:

  • Global Points of Access: Reflects all locations at which fresh doughnuts or cookies can be purchased. We define global points of access to include all Hot Light Theater Shops, Fresh Shops, Carts and Food Trucks, DFD Doors and Cookie Shops, at both Company-owned and franchise locations as of the end of the respective reporting period. We monitor global points of access as a metric that informs the growth of our omni-channel presence over time and believe this metric is useful to investors to understand our footprint in each of our segments.
  • Hubs: Reflects locations where fresh doughnuts are produced and processed for sale at any point of access. We define Hubs to include self-sustaining Hot Light Theater Shops and Doughnut Factories, at both Company-owned and franchise locations as of the end of the respective reporting period.
  • Sales Per Hub: Sales per Hub equals Fresh Revenues from Hubs with Spokes, divided by the average number of Hubs with Spokes at the end of the five most recent quarters.
  • Fresh Revenues from Hubs with Spokes: Fresh Revenues include product sales generated from our Doughnut Shop business (including ecommerce and delivery), as well as DFD sales, but excluding sales from Branded Sweet Treats. It also excludes all Insomnia Cookies revenues as the measure is focused on the Krispy Kreme business. Fresh Revenues from Hubs with Spokes equals the Fresh Revenues derived from those Hubs currently producing product for other shops, Carts and Food Trucks, and/or DFD doors, but excluding Fresh Revenues derived from those Hubs not currently producing product for other shops, Carts and Food Trucks, and/or DFD doors.
  • Free Cash Flow: Defined as cash provided by operating activities less purchases of property and equipment.

Conference Call

Krispy Kreme will host a public conference call at 8:30 AM Eastern Time today to discuss its results for the fourth quarter of 2023. The conference call can be accessed by dialing 1 (800) 599-5188 and entering the conference ID 5487868. International participants can access the call via the corresponding number listed HERE and entering the conference ID 5487868. To listen to the live audio webcast and Q&A, visit the Krispy Kreme investor relations website at investors.krispykreme.com. A replay and transcript of the webcast will be available on the website within 24 hours after the call. Krispy Kreme’s earnings press release and related materials will also be available on the investor relations section of the Company’s website.

About Krispy Kreme

Headquartered in Charlotte, N.C., Krispy Kreme is one of the most beloved and well-known sweet treat brands in the world. Our iconic Original Glazed® doughnut is universally recognized for its hot-off-the-line, melt-in-your-mouth experience. Krispy Kreme operates in 39 countries through its unique network of fresh doughnut shops, partnerships with leading retailers, and a rapidly growing Ecommerce and delivery business with more than 14,000 fresh points of access. Our purpose of touching and enhancing lives through the joy that is Krispy Kreme guides how we operate every day and is reflected in the love we have for our people, our communities and the planet. Connect with Krispy Kreme Doughnuts at www.KrispyKreme.com, or on one of its many social media channels, including www.Facebook.com/KrispyKreme and www.Twitter.com/KrispyKreme.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. The words “continue,” “towards,” “expect,” “outlook,” “guidance,” “explore,” or similar words, or the negative of these words, identify forward-looking statements. Such forward-looking statements are based on certain assumptions and estimates that we consider reasonable but are subject to various risks and uncertainties and assumptions relating to our operations, financial results, financial conditions, business, prospects, growth strategy and liquidity. Accordingly, there are, or will be, important factors that could cause our actual results to differ materially from those indicated in these statements. The inclusion of this forward-looking information should not be regarded as a representation by us that the future plans, estimates or expectations contemplated by us will be achieved. Our actual results could differ materially from the forward-looking statements included herein. Factors that could cause actual results to differ from those expressed in forward-looking statements include, without limitation, the risks and uncertainties described under the headings “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in our Annual Report on Form 10-K for the year ended January 1, 2023, filed by us with the Securities and Exchange Commission (“SEC”) and described in the other filings we make from time to time with the SEC. We believe that these factors include, but are not limited to, the impact of pandemics, changes in consumer preferences, the impact of inflation, and our ability to execute on our omni-channel business strategy. These forward-looking statements are made only as of the date of this document, and we do not undertake any obligation, other than as may be required by applicable law, to update or revise any forward-looking or cautionary statement to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, or changes in future operating results over time or otherwise.

Non-GAAP Measures

This press release includes certain non-GAAP financial measures including organic revenue growth, Adjusted EBITDA, Adjusted Net Income, Diluted, Adjusted Diluted EPS, Fresh Revenue from Hubs with Spokes and Sales per Hub, which differ from results using U.S. Generally Accepted Accounting Principles (“GAAP”). These non-GAAP financial measures are not universally consistent calculations, limiting their usefulness as comparative measures. Other companies may calculate similarly titled financial measures differently than we do or may not calculate them at all. Additionally, these non-GAAP financial measures are not measurements of financial performance under GAAP. In order to facilitate a clear understanding of our consolidated historical operating results, you should examine our non-GAAP financial measures in conjunction with our historical consolidated financial statements and notes thereto filed with the SEC.

To the extent that the Company provides guidance, it does so only on a non-GAAP basis. The Company does not provide reconciliations of such forward-looking non-GAAP measures to GAAP due to the inability to predict the amount and timing of impacts outside of the Company’s control on certain items, such as net income and other charges reflected in our reconciliation of historic numbers, the amount of which, based on historical experience, could be significant.

 

Krispy Kreme, Inc.

Consolidated Statements of Operations

(in thousands, except per share amounts)

 
 

 

Fiscal Years Ended

 

December 31,

2023 (52 weeks)

 

January 1,

2023 (52 weeks)

 

January 2,

2022 (52 weeks)

 

(unaudited)

 

 

 

 

Net revenues

 

 

 

 

 

Product sales

$

1,651,166

 

 

$

1,497,882

 

 

$

1,353,466

 

Royalties and other revenues

 

34,938

 

 

 

32,016

 

 

 

30,925

 

Total net revenues

 

1,686,104

 

 

 

1,529,898

 

 

 

1,384,391

 

Product and distribution costs

 

443,243

 

 

 

406,227

 

 

 

354,093

 

Operating expenses

 

776,589

 

 

 

704,287

 

 

 

630,239

 

Selling, general and administrative expense

 

266,863

 

 

 

223,198

 

 

 

222,394

 

Marketing expenses

 

45,872

 

 

 

42,566

 

 

 

39,489

 

Pre-opening costs

 

4,120

 

 

 

4,227

 

 

 

5,568

 

Other expenses/(income), net

 

10,378

 

 

 

10,157

 

 

 

(10,102

)

Depreciation and amortization expense

 

125,894

 

 

 

110,261

 

 

 

101,608

 

Operating income

 

13,145

 

 

 

28,975

 

 

 

41,102

 

Interest expense, net

 

50,341

 

 

 

34,102

 

 

 

32,622

 

Interest expense – related party

 

 

 

 

 

 

 

10,387

 

Other non-operating expense, net

 

3,798

 

 

 

3,036

 

 

 

2,191

 

Loss before income taxes

 

(40,994

)

 

 

(8,163

)

 

 

(4,098

)

Income tax (benefit)/expense

 

(4,347

)

 

 

612

 

 

 

10,745

 

Net loss

 

(36,647

)

 

 

(8,775

)

 

 

(14,843

)

Net income attributable to noncontrolling interest

 

1,278

 

 

 

6,847

 

 

 

9,663

 

Net loss attributable to Krispy Kreme, Inc.

$

(37,925

)

 

$

(15,622

)

 

$

(24,506

)

Net loss per share:

 

 

 

 

 

Common stock - Basic

$

(0.23

)

 

$

(0.10

)

 

$

(0.18

)

Common stock - Diluted

$

(0.23

)

 

$

(0.10

)

 

$

(0.18

)

Weighted average shares outstanding:

 

 

 

 

 

Basic

 

168,289

 

 

 

167,471

 

 

 

147,655

 

Diluted

 

168,289

 

 

 

167,471

 

 

 

147,655

 

 

 

Quarter Ended

 

December 31,

2023 (13 weeks)

 

January 1,

2023 (13 weeks)

 

(unaudited)

 

 

Net revenues

 

 

 

Product sales

$

441,399

 

 

$

395,837

 

Royalties and other revenues

 

9,506

 

 

 

8,762

 

Total net revenues

 

450,905

 

 

 

404,599

 

Product and distribution costs

 

112,951

 

 

 

106,688

 

Operating expenses

 

200,636

 

 

 

184,027

 

Selling, general and administrative expense

 

74,508

 

 

 

62,932

 

Marketing expenses

 

13,771

 

 

 

10,197

 

Pre-opening costs

 

1,193

 

 

 

713

 

Other expenses, net

 

16,429

 

 

 

8,357

 

Depreciation and amortization expense

 

36,752

 

 

 

26,479

 

Operating (loss)/income

 

(5,335

)

 

 

5,206

 

Interest expense, net

 

13,483

 

 

 

10,294

 

Other non-operating expense, net

 

767

 

 

 

953

 

Loss before income taxes

 

(19,585

)

 

 

(6,041

)

Income tax benefit

 

(21,468

)

 

 

(5,056

)

Net income/(loss)

 

1,883

 

 

 

(985

)

Net (loss)/income attributable to noncontrolling interest

 

(727

)

 

 

1,734

 

Net income/(loss) attributable to Krispy Kreme, Inc.

$

2,610

 

 

$

(2,719

)

Net income/(loss) per share:

 

 

 

Common stock - Basic

$

0.02

 

 

$

(0.02

)

Common stock - Diluted

$

0.02

 

 

$

(0.02

)

Weighted average shares outstanding:

 

 

 

Basic

 

168,609

 

 

 

167,826

 

Diluted

 

170,678

 

 

 

167,826

 

 

Krispy Kreme, Inc.

Consolidated Balance Sheets

(in thousands, except per share data)

 
 

 

As of

 

December 31, 2023

 

January 1, 2023

 

(unaudited)

 

 

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

38,185

 

 

$

35,371

 

Restricted cash

 

429

 

 

 

359

 

Accounts receivable, net

 

59,362

 

 

 

51,089

 

Inventories

 

34,716

 

 

 

46,239

 

Taxes receivable

 

15,526

 

 

 

18,263

 

Prepaid expense and other current assets

 

25,363

 

 

 

26,953

 

Total current assets

 

173,581

 

 

 

178,274

 

Property and equipment, net

 

538,220

 

 

 

472,358

 

Goodwill

 

1,101,939

 

 

 

1,087,908

 

Other intangible assets, net

 

946,349

 

 

 

966,088

 

Operating lease right of use asset, net

 

456,964

 

 

 

417,381

 

Other assets

 

23,539

 

 

 

26,528

 

Total assets

$

3,240,592

 

 

$

3,148,537

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Current portion of long-term debt

$

54,631

 

 

$

40,034

 

Current operating lease liabilities

 

50,365

 

 

 

43,160

 

Accounts payable

 

156,488

 

 

 

225,276

 

Accrued liabilities

 

134,005

 

 

 

104,424

 

Structured payables

 

130,104

 

 

 

103,575

 

Total current liabilities

 

525,593

 

 

 

516,469

 

Long-term debt, less current portion

 

836,615

 

 

 

739,052

 

Noncurrent operating lease liabilities

 

454,583

 

 

 

412,759

 

Deferred income taxes, net

 

123,925

 

 

 

143,124

 

Other long-term obligations and deferred credits

 

36,093

 

 

 

38,258

 

Total liabilities

 

1,976,809

 

 

 

1,849,662

 

Commitments and contingencies

 

 

 

Shareholders’ equity:

 

 

 

Common stock, $0.01 par value; 300,000 shares authorized as of both December 31, 2023 and January 1, 2023; 168,628 and 168,137 shares issued and outstanding as of December 31, 2023 and January 1, 2023, respectively

 

1,686

 

 

 

1,681

 

Additional paid-in capital

 

1,443,591

 

 

 

1,426,105

 

Shareholder note receivable

 

(3,850

)

 

 

(4,813

)

Accumulated other comprehensive income/(loss), net of income tax

 

7,246

 

 

 

(9,151

)

Retained deficit

 

(278,990

)

 

 

(217,490

)

Total shareholders’ equity attributable to Krispy Kreme, Inc.

 

1,169,683

 

 

 

1,196,332

 

Noncontrolling interest

 

94,100

 

 

 

102,543

 

Total shareholders’ equity

 

1,263,783

 

 

 

1,298,875

 

Total liabilities and shareholders’ equity

$

3,240,592

 

 

$

3,148,537

 

 

Krispy Kreme, Inc.

Consolidated Statements of Cash Flows

(in thousands)

 
 

 

Fiscal Years Ended

 

December 31,

2023 (52 weeks)

 

January 1,

2023 (52 weeks)

 

January 2,

2022 (52 weeks)

 

(unaudited)

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

Net loss

$

(36,647

)

 

$

(8,775

)

 

$

(14,843

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

 

Depreciation and amortization expense

 

125,894

 

 

 

110,261

 

 

 

101,608

 

Deferred and other income taxes

 

(18,486

)

 

 

(14,237

)

 

 

(3,496

)

Loss on extinguishment of debt

 

472

 

 

 

 

 

 

1,700

 

Impairment and lease termination charges

 

24,909

 

 

 

18,297

 

 

 

3,507

 

Loss on disposal of property and equipment

 

110

 

 

 

393

 

 

 

458

 

Gain on sale-leaseback

 

(9,646

)

 

 

(6,549

)

 

 

(8,673

)

Share-based compensation

 

24,196

 

 

 

18,170

 

 

 

22,923

 

Change in accounts and notes receivable allowances

 

654

 

 

 

570

 

 

 

275

 

Inventory write-off

 

11,248

 

 

 

868

 

 

 

4,071

 

Settlement of interest rate swap derivatives

 

7,657

 

 

 

8,476

 

 

 

 

Amortization related to settlement of interest rate swap derivatives

 

(10,289

)

 

 

 

 

 

 

Other

 

2,155

 

 

 

2,232

 

 

 

594

 

Change in operating assets and liabilities, excluding business acquisitions and foreign currency translation adjustments:

 

 

 

 

 

Accounts, notes, and taxes receivable

 

(3,523

)

 

 

(9,485

)

 

 

(3,817

)

Inventories

 

780

 

 

 

(12,515

)

 

 

(301

)

Other current and noncurrent assets

 

(2,395

)

 

 

(1,691

)

 

 

(316

)

Operating lease assets and liabilities

 

5,111

 

 

 

(793

)

 

 

7,787

 

Accounts payable and accrued liabilities

 

(74,471

)

 

 

32,015

 

 

 

30,240

 

Other long-term obligations and deferred credits

 

(2,185

)

 

 

2,581

 

 

 

(493

)

Net cash provided by operating activities

 

45,544

 

 

 

139,818

 

 

 

141,224

 

CASH FLOWS USED FOR INVESTING ACTIVITIES:

 

 

 

 

 

Purchase of property and equipment

 

(121,427

)

 

 

(111,717

)

 

 

(119,497

)

Proceeds from disposals of assets

 

218

 

 

 

1,077

 

 

 

218

 

Proceeds from sale-leaseback

 

10,025

 

 

 

8,401

 

 

 

11,091

 

Acquisition of shops and franchise rights from franchisees, net of cash acquired

 

 

 

 

(17,330

)

 

 

(46,330

)

Purchase of equity method investment

 

(1,424

)

 

 

(989

)

 

 

 

Principal payments received from loans to franchisees

 

20

 

 

 

59

 

 

 

92

 

Disbursement for loan receivable

 

 

 

 

(975

)

 

 

 

Maturities of held-to-maturity debt securities

 

 

 

 

 

 

 

1,019

 

Net cash used for investing activities

 

(112,588

)

 

 

(121,474

)

 

 

(153,407

)

CASH FLOWS FROM/(USED FOR) FINANCING ACTIVITIES:

 

 

 

 

 

Proceeds from the issuance of debt

 

1,175,698

 

 

 

149,000

 

 

 

695,000

 

Repayment of long-term debt and lease obligations

 

(1,084,390

)

 

 

(101,181

)

 

 

(1,147,049

)

Payment of financing costs

 

(5,175

)

 

 

 

 

 

(1,700

)

Proceeds from structured payables

 

241,148

 

 

 

282,023

 

 

 

266,851

 

Payments on structured payables

 

(214,574

)

 

 

(294,457

)

 

 

(287,625

)

Payment of contingent consideration related to a business combination

 

(925

)

 

 

(900

)

 

 

 

Capital contribution from shareholders, net of loans issued

 

764

 

 

 

(288

)

 

 

120,532

 

Proceeds from IPO, net of underwriting discounts (excluding unpaid issuance costs)

 

 

 

 

 

 

 

527,329

 

Payments of issuance costs in connection with IPO

 

 

 

 

(12,458

)

 

 

 

Proceeds from sale of noncontrolling interest in subsidiary

 

292

 

 

 

593

 

 

 

53,404

 

Distribution to shareholders

 

(23,558

)

 

 

(23,430

)

 

 

(48,187

)

Payments for repurchase and retirement of common stock

 

(1,880

)

 

 

(4,019

)

 

 

(139,103

)

Distribution to noncontrolling interest

 

(15,538

)

 

 

(11,721

)

 

 

(23,356

)

Net cash provided by/(used for) financing activities

 

71,862

 

 

 

(16,838

)

 

 

16,096

 

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

(1,934

)

 

 

(4,968

)

 

 

(2,204

)

Net increase/(decrease) in cash, cash equivalents and restricted cash

 

2,884

 

 

 

(3,462

)

 

 

1,709

 

Cash, cash equivalents and restricted cash at beginning of the fiscal year

 

35,730

 

 

 

39,192

 

 

 

37,483

 

Cash, cash equivalents and restricted cash at end of the fiscal year

$

38,614

 

 

$

35,730

 

 

$

39,192

 

 

 

 

 

 

 

Net cash provided by operating activities

$

45,544

 

 

$

139,818

 

 

$

141,224

 

Less: Purchase of property and equipment

 

(121,427

)

 

 

(111,717

)

 

 

(119,497

)

Free cash flow

$

(75,883

)

 

$

28,101

 

 

$

21,727

 

 
 

Krispy Kreme, Inc.

Reconciliation of Non-GAAP Financial Measures

(unaudited and in thousands, except per share amounts)

We define “Adjusted EBITDA” as earnings before interest expense, net, income tax expense, and depreciation and amortization, with further adjustments for share-based compensation, certain strategic initiatives, acquisition and integration expenses, and other certain non-recurring, infrequent or non-core income and expense items. Adjusted EBITDA is a principal metric that management uses to monitor and evaluate operating performance and provides a consistent benchmark for comparison across reporting periods.

We define “Adjusted Net Income, Diluted” as net loss attributable to common shareholders, adjusted for interest expense, share-based compensation, certain strategic initiatives, acquisition and integration expenses, amortization of acquisition-related intangibles, the tax impact of adjustments, and other certain non-recurring, infrequent or non-core income and expense items. “Adjusted EPS” is Adjusted Net Income, Diluted converted to a per share amount.

Adjusted EBITDA, Adjusted Net Income, Diluted, and Adjusted EPS have certain limitations, including adjustments for income and expense items that are required by GAAP. In evaluating these non-GAAP measures, you should be aware that in the future we will incur expenses that are the same as or similar to some of the adjustments in this presentation, such as share-based compensation. Our presentation of Adjusted EBITDA, Adjusted Net Income, Diluted, and Adjusted EPS should not be construed to imply that our future results will be unaffected by any such adjustments. Management compensates for these limitations by relying on our GAAP results in addition to using Adjusted EBITDA, Adjusted Net Income, Diluted, and Adjusted EPS supplementally.

 

Quarter Ended

 

Fiscal Years Ended

(in thousands)

December 31,

2023

 

January 1,

2023

 

December 31,

2023

 

January 1,

2023

Net income/(loss)

$

1,883

 

 

$

(985

)

 

$

(36,647

)

 

$

(8,775

)

Interest expense, net

 

13,483

 

 

 

10,294

 

 

 

50,341

 

 

 

34,102

 

Income tax (benefit)/expense

 

(21,468

)

 

 

(5,056

)

 

 

(4,347

)

 

 

612

 

Depreciation and amortization expense

 

36,752

 

 

 

26,479

 

 

 

125,894

 

 

 

110,261

 

Share-based compensation

 

6,375

 

 

 

4,852

 

 

 

24,196

 

 

 

18,170

 

Employer payroll taxes related to share-based compensation

 

85

 

 

 

220

 

 

 

395

 

 

 

312

 

Other non-operating expense, net (1)

 

767

 

 

 

953

 

 

 

3,798

 

 

 

3,036

 

Strategic initiatives (2)

 

5,216

 

 

 

2,635

 

 

 

29,057

 

 

 

2,841

 

Acquisition and integration expenses (3)

 

32

 

 

 

944

 

 

 

511

 

 

 

2,333

 

New market penetration expenses (4)

 

367

 

 

 

828

 

 

 

1,380

 

 

 

1,511

 

Shop closure expenses (5)

 

16,979

 

 

 

11,606

 

 

 

17,335

 

 

 

19,465

 

Restructuring and severance expenses (6)

 

2,251

 

 

 

4,321

 

 

 

5,050

 

 

 

7,125

 

Gain on sale-leaseback

 

 

 

 

(2,238

)

 

 

(9,646

)

 

 

(6,549

)

Other (7)

 

1,419

 

 

 

1,066

 

 

 

4,307

 

 

 

6,285

 

Adjusted EBITDA

$

64,141

 

 

$

55,919

 

 

$

211,624

 

 

$

190,729

 

 
 

 

Quarter Ended

 

Fiscal Years Ended

(in thousands)

December 31,

2023

 

January 1,

2023

 

December 31,

2023

 

January 1,

2023

Segment Adjusted EBITDA:

 

 

 

 

 

 

 

U.S.

$

42,101

 

 

$

35,269

 

 

$

130,979

 

 

$

112,283

 

International

 

22,067

 

 

 

20,479

 

 

 

76,503

 

 

 

75,512

 

Market Development

 

16,924

 

 

 

13,979

 

 

 

62,995

 

 

 

50,621

 

Corporate

 

(16,951

)

 

 

(13,808

)

 

 

(58,853

)

 

 

(47,687

)

Total Adjusted EBITDA

$

64,141

 

 

$

55,919

 

 

$

211,624

 

 

$

190,729

 

 
 

 

Quarter Ended

 

Fiscal Years Ended

(in thousands, except per share amounts)

December 31,

2023

 

January 1,

2023

 

December 31,

2023

 

January 1,

2023

Net income/(loss)

$

1,883

 

 

$

(985

)

 

$

(36,647

)

 

$

(8,775

)

Share-based compensation

 

6,375

 

 

 

4,852

 

 

 

24,196

 

 

 

18,170

 

Employer payroll taxes related to share-based compensation

 

85

 

 

 

220

 

 

 

395

 

 

 

312

 

Other non-operating expense, net (1)

 

767

 

 

 

953

 

 

 

3,798

 

 

 

3,036

 

Strategic initiatives (2)

 

5,216

 

 

 

2,635

 

 

 

29,057

 

 

 

2,841

 

Acquisition and integration expenses (3)

 

32

 

 

 

944

 

 

 

511

 

 

 

2,333

 

New market penetration expenses (4)

 

367

 

 

 

828

 

 

 

1,380

 

 

 

1,511

 

Shop closure expenses (5)

 

16,979

 

 

 

11,606

 

 

 

17,335

 

 

 

19,715

 

Restructuring and severance expenses (6)

 

2,251

 

 

 

4,321

 

 

 

5,050

 

 

 

7,125

 

Gain on sale-leaseback

 

 

 

 

(2,238

)

 

 

(9,646

)

 

 

(6,549

)

Other (7)

 

1,419

 

 

 

1,066

 

 

 

4,307

 

 

 

6,285

 

Amortization of acquisition related intangibles (8)

 

7,346

 

 

 

7,149

 

 

 

29,373

 

 

 

28,456

 

Loss on extinguishment of 2019 Facility (9)

 

 

 

 

 

 

 

472

 

 

 

 

Tax impact of adjustments (10)

 

(29,303

)

 

 

(8,720

)

 

 

(20,729

)

 

 

(14,609

)

Tax specific adjustments (11)

 

979

 

 

 

(2,248

)

 

 

(1,364

)

 

 

(2,876

)

Net income attributable to noncontrolling interest

 

727

 

 

 

(1,734

)

 

 

(1,278

)

 

 

(6,847

)

Adjustment to adjusted net income attributable to common shareholders

 

 

 

 

 

 

 

 

 

 

(374

)

Adjusted net income attributable to common shareholders - Basic

$

15,123

 

 

$

18,649

 

 

$

46,210

 

 

$

49,754

 

Additional income attributed to noncontrolling interest due to subsidiary potential common shares

 

(13

)

 

 

(37

)

 

 

(28

)

 

 

(143

)

Adjusted net income attributable to common shareholders - Diluted

$

15,110

 

 

$

18,612

 

 

$

46,182

 

 

$

49,611

 

Basic weighted average common shares outstanding

 

168,609

 

 

 

167,826

 

 

 

168,289

 

 

 

167,471

 

Dilutive effect of outstanding common stock options, RSUs, and PSUs

 

2,069

 

 

 

2,000

 

 

 

2,204

 

 

 

2,005

 

Diluted weighted average common shares outstanding

 

170,678

 

 

 

169,826

 

 

 

170,493

 

 

 

169,476

 

Adjusted net income per share attributable to common shareholders:

 

 

 

 

 

 

 

Basic

$

0.09

 

 

$

0.11

 

 

$

0.27

 

 

$

0.30

 

Diluted

$

0.09

 

 

$

0.11

 

 

$

0.27

 

 

$

0.29

 

(1)

Primarily foreign translation gains and losses in each period.

(2)

Fiscal 2023 consists primarily of costs associated with global transformation and U.S. initiatives such as the decision to exit the Branded Sweet Treats business, including property, plant and equipment impairments, inventory write-offs, employee severance, and other related costs (approximately $17.9 million of the total). Fiscal 2022 consists mainly of equipment disposals, equipment relocation and installation, consulting and advisory fees, and other costs associated with our shift of Branded Sweet Treats manufacturing capability from Burlington, Iowa to Winston-Salem, North Carolina.

(3)

Consists of acquisition and integration-related costs in connection with the Company’s business and franchise acquisitions, including legal, due diligence, and advisory fees incurred in connection with acquisition and integration-related activities for the applicable period.

(4)

Consists of start-up costs associated with entry into new countries for which the Company’s brands have not previously operated, including the Insomnia Cookies brand entering Canada and the U.K.

(5)

Fiscal 2023 includes lease termination costs, impairment charges, and loss on disposal of property, plant and equipment, primarily associated with strategic shop exits, primarily in the U.S. (approximately $16.0 million of the total). Fiscal 2022 includes lease termination costs, impairment charges, and loss on disposal of property, plant and equipment, primarily associated with strategic shop exits. Fiscal 2022 expenses are also inclusive of accelerated depreciation related to replacing a point of sale system.

(6)

Fiscal 2023 and fiscal 2022 consist primarily of costs associated with restructuring of the global executive team.

(7)

Fiscal 2023, fiscal 2022, and fiscal 2021 consist primarily of legal and other regulatory expenses incurred outside the ordinary course of business, including the net settlement of approximately $3.3 million negotiated with TSW Foods, LLC in fiscal 2022.

(8)

Consists of amortization related to acquired intangible assets as reflected within depreciation and amortization in the Consolidated Statements of Operations.

(9)

Includes interest expenses related to unamortized debt issuance costs from the 2019 Facility associated with extinguished lenders as a result of the March 2023 debt refinancing.

(10)

Tax impact of adjustments calculated applying the applicable statutory rates. The Company’s adjusted effective tax rate is 27.2%, 24.1%, and 22.4% for each of the fiscal years 2023, 2022, and 2021, respectively. Fiscal 2023 also includes the impact of disallowed executive compensation expense. Fiscal 2022 includes the impact of disallowed executive compensation expense and a discrete tax benefit related to a legal accrual.

(11)

Fiscal 2023 consists of the recognition of a previously unrecognized tax benefit unrelated to ongoing operations, the effect of tax law changes on existing temporary differences, and a discrete tax benefit unrelated to ongoing operations. Fiscal 2022 consists of the recognition of previously unrecognized tax benefits unrelated to ongoing operations, as well as benefits attributable to multiple tax years due to lapse of the statute of limitations. Fiscal 2022 also includes the effect of discrete adjustments to the Company’s deferred tax liabilities that are unrelated to the Company’s ongoing operations.

 

Krispy Kreme, Inc.

Segment Reporting

(unaudited and in thousands, except percentages or otherwise stated)

 
 

 

Quarter Ended

 

December 31,

2023

 

January 1,

2023

 

January 2,

2022

Net revenues:

 

 

 

 

 

U.S.

$

296,006

 

$

270,836

 

$

243,934

International

 

107,051

 

 

92,928

 

 

89,990

Market Development

 

47,848

 

 

40,835

 

 

36,673

Total net revenues

$

450,905

 

$

404,599

 

$

370,597

 
 

Q4 2023 Organic Revenue - QTD

(in thousands, except percentages)

U.S.

 

International

 

Market

Development

 

Total Company

Total net revenues Q4 2023 (13 weeks)

$

296,006

 

 

$

107,051

 

 

$

47,848

 

 

$

450,905

 

Total net revenues Q4 2022 (13 weeks)

 

270,836

 

 

 

92,928

 

 

 

40,835

 

 

 

404,599

 

Total Net Revenue Growth

 

25,170

 

 

 

14,123

 

 

 

7,013

 

 

 

46,306

 

Total Net Revenue Growth %

 

9.3

%

 

 

15.2

%

 

 

17.2

%

 

 

11.4

%

Less: Impact of shop optimization program closures

 

(1,754

)

 

 

 

 

 

 

 

 

(1,754

)

Less: Impact of Branded Sweet Treats exit

 

(8,841

)

 

 

 

 

 

 

 

 

(8,841

)

Adjusted net revenues Q4 2022

 

260,241

 

 

 

92,928

 

 

 

40,835

 

 

 

394,004

 

Adjusted Net Revenue Growth

 

35,765

 

 

 

14,123

 

 

 

7,013

 

 

 

56,901

 

Impact of foreign currency translation

 

 

 

 

(5,758

)

 

 

837

 

 

 

(4,921

)

Organic Revenue Growth

$

35,765

 

 

$

8,365

 

 

$

7,850

 

 

$

51,980

 

Organic Revenue Growth %

 

13.7

%

 

 

9.0

%

 

 

19.2

%

 

 

13.2

%

 
 

Q4 2022 Organic Revenue - QTD

(in thousands, except percentages)

U.S.

 

International

 

Market

Development

 

Total Company

Total net revenues Q4 2022 (13 weeks)

$

270,836

 

 

$

92,928

 

 

$

40,835

 

 

$

404,599

 

Total net revenues Q4 2021 (13 weeks)

 

243,934

 

 

 

89,990

 

 

 

36,673

 

 

 

370,597

 

Total Net Revenue Growth

 

26,902

 

 

 

2,938

 

 

 

4,162

 

 

 

34,002

 

Total Net Revenue Growth %

 

11.0

%

 

 

3.3

%

 

 

11.3

%

 

 

9.2

%

Less: Impact of shop optimization program closures

 

(1,374

)

 

 

 

 

 

 

 

 

(1,374

)

Adjusted net revenues Q4 2021

 

242,560

 

 

 

89,990

 

 

 

36,673

 

 

 

369,223

 

Adjusted Net Revenue Growth

 

28,276

 

 

 

2,938

 

 

 

4,162

 

 

 

35,376

 

Impact of acquisitions

 

(2,652

)

 

 

 

 

 

769

 

 

 

(1,883

)

Impact of foreign currency translation

 

 

 

 

7,211

 

 

 

5,520

 

 

 

12,731

 

Organic Revenue Growth

$

25,624

 

 

$

10,149

 

 

$

10,451

 

 

$

46,224

 

Organic Revenue Growth %

 

10.6

%

 

 

11.3

%

 

 

28.5

%

 

 

12.5

%

 
 

 

Fiscal Years Ended

 

December 31,

2023

 

January 1,

2023

 

January 2,

2022

Net revenues:

 

 

 

U.S.

$

1,104,944

 

$

1,010,250

 

$

923,129

International

 

401,801

 

 

365,916

 

 

332,995

Market Development

 

179,359

 

 

153,732

 

 

128,267

Total net revenues

$

1,686,104

 

$

1,529,898

 

$

1,384,391

 
 

Full Year 2023 Organic Revenue - YTD

in thousands, except percentages)

U.S.

 

International

 

Market

Development

 

Total Company

Total net revenues in fiscal 2023 (52 weeks)

$

1,104,944

 

 

$

401,801

 

 

$

179,359

 

 

$

1,686,104

 

Total net revenues in fiscal 2022 (52 weeks)

 

1,010,250

 

 

 

365,916

 

 

 

153,732

 

 

 

1,529,898

 

Total Net Revenue Growth

 

94,694

 

 

 

35,885

 

 

 

25,627

 

 

 

156,206

 

Total Net Revenue Growth %

 

9.4

%

 

 

9.8

%

 

 

16.7

%

 

 

10.2

%

Less: Impact of shop optimization program closures

 

(11,367

)

 

 

 

 

 

 

 

 

(11,367

)

Less: Impact of Branded Sweet Treats exit

 

(24,577

)

 

 

 

 

 

 

 

 

(24,577

)

Adjusted net revenues in fiscal 2022

 

974,306

 

 

 

365,916

 

 

 

153,732

 

 

 

1,493,954

 

Adjusted Net Revenue Growth

 

130,638

 

 

 

35,885

 

 

 

25,627

 

 

 

192,150

 

Impact of acquisitions

 

(7,678

)

 

 

 

 

 

2,227

 

 

 

(5,451

)

Impact of foreign currency translation

 

 

 

 

(10,351

)

 

 

5,312

 

 

 

(5,039

)

Organic Revenue Growth

$

122,960

 

 

$

25,534

 

 

$

33,166

 

 

$

181,660

 

Organic Revenue Growth %

 

12.6

%

 

 

7.0

%

 

 

21.6

%

 

 

12.2

%

 
 

Full Year 2022 Organic Revenue - YTD

(in thousands, except percentages)

U.S.

 

International

 

Market

Development

 

Total Company

Total net revenues in fiscal 2022 (52 weeks)

$

1,010,250

 

 

$

365,916

 

 

$

153,732

 

 

$

1,529,898

 

Total net revenues in fiscal 2021 (52 weeks)

 

923,129

 

 

 

332,995

 

 

 

128,267

 

 

 

1,384,391

 

Total Net Revenue Growth

 

87,121

 

 

 

32,921

 

 

 

25,465

 

 

 

145,507

 

Total Net Revenue Growth %

 

9.4

%

 

 

9.9

%

 

 

19.9

%

 

 

10.5

%

Less: Impact of shop optimization program closures

 

(1,374

)

 

 

 

 

 

 

 

 

(1,374

)

Adjusted net revenues fiscal 2021

 

921,755

 

 

 

332,995

 

 

 

128,267

 

 

 

1,383,017

 

Adjusted Net Revenue Growth

 

88,495

 

 

 

32,921

 

 

 

25,465

 

 

 

146,881

 

Impact of acquisitions

 

(7,608

)

 

 

 

 

 

(9,884

)

 

 

(17,492

)

Impact of foreign currency translation

 

 

 

 

26,052

 

 

 

11,290

 

 

 

37,342

 

Organic Revenue Growth

$

80,887

 

 

$

58,973

 

 

$

26,871

 

 

$

166,731

 

Organic Revenue Growth %

 

8.8

%

 

 

17.7

%

 

 

20.9

%

 

 

12.1

%

 

 

Fiscal Years Ended

Sales per Hub

(in thousands, unless otherwise stated)

December 31,

2023 (52 weeks)

 

January 1, 2023

(52 weeks)

 

January 2, 2022

(52 weeks)

U.S.:

 

 

 

 

 

Revenues

$

1,104,944

 

 

$

1,010,250

 

 

$

923,129

 

Non-Fresh Revenues (1)

 

(9,416

)

 

 

(38,380

)

 

 

(37,311

)

Fresh Revenues from Insomnia Cookies and Hubs without Spokes (2)

 

(399,061

)

 

 

(404,430

)

 

 

(414,899

)

Sales from Hubs with Spokes

 

696,467

 

 

 

567,440

 

 

 

470,919

 

Sales per Hub (millions)

 

4.9

 

 

 

4.5

 

 

 

4.0

 

 

 

 

 

 

 

International:

 

 

 

 

 

Sales from Hubs with Spokes (3)

$

401,801

 

 

$

365,916

 

 

$

332,995

 

Sales per Hub (millions) (4)

 

10.0

 

 

 

10.1

 

 

 

8.7

 

(1)

Includes the exited Branded Sweet Treats business revenues.

(2)

Includes Insomnia Cookies revenues and Fresh Revenues generated by Hubs without Spokes.

(3)

Total International net revenues is equal to Fresh Revenues from Hubs with Spokes for that business segment.

(4)

International sales per Hub comparative data has been restated in constant currency based on current exchange rates.

 

Krispy Kreme, Inc.

Global Points of Access

 
 

 

Global Points of Access (1)

 

Fiscal Years Ended

 

December 31, 2023

 

January 1, 2023

 

January 2, 2022

 

(unaudited)

 

 

 

 

U.S.: (2)

 

 

 

 

 

Hot Light Theater Shops

229

 

234

 

237

Fresh Shops

70

 

62

 

60

Cookie Bakeries

265

 

231

 

210

Carts, Food Trucks, and Other (3)

 

 

2

DFD Doors (5)

6,808

 

5,729

 

5,204

Total

7,372

 

6,256

 

5,713

International:

 

 

 

 

 

Hot Light Theater Shops

35

 

37

 

32

Fresh Shops

413

 

388

 

370

Carts, Food Trucks, and Other (3)

16

 

14

 

1

DFD Doors

3,693

 

3,032

 

2,488

Total

4,157

 

3,471

 

2,891

Market Development: (4)

 

 

 

 

 

Hot Light Theater Shops.

125

 

115

 

113

Fresh Shops

1,038

 

873

 

788

Cookie Bakeries

2

 

 

Carts, Food Trucks, and Other (3)

30

 

27

 

31

DFD Doors

1,423

 

1,095

 

891

Total

2,618

 

2,110

 

1,823

Total Global Points of Access (as defined)

14,147

 

11,837

 

10,427

Total Hot Light Theater Shops

389

 

386

 

382

Total Fresh Shops

1,521

 

1,323

 

1,218

Total Cookie Bakeries

257

 

231

 

210

Total Shops

2,167

 

1,940

 

1,810

Total Carts, Food Trucks, and Other

46

 

41

 

34

Total DFD Doors

11,924

 

9,856

 

8,583

Total Global Points of Access (as defined)

14,147

 

11,837

 

10,427

(1)

Excludes the recently exited Branded Sweet Treats distribution points.

(2)

Includes Points of Access that were acquired from franchisees in the U.S. These Points of Access were previously included in the Market Development segment prior to the respective acquisition dates.

(3)

Carts and Food Trucks are non-producing, mobile (typically on wheels) facilities without walls or a door where product is received from a Hot Light Theater Shop or Doughnut Factory. Other includes a vending machine. Points of Access in this category are primarily found in international locations in airports, train stations, etc.

(4)

Includes locations in Japan and Canada, which are Company-owned. All remaining Points of Access in the Market Development segment relate to our franchise business. As of December 31, 2023, there were five Hot Light Theater Shops, 61 Fresh Shops, and 241 DFD Doors operating in Japan and four Hot Light Theater Shops, nine Fresh Shops, and 43 DFD Doors operating in Canada. As of January 1, 2023, there were five Hot Light Theater Shops, 54 Fresh Shops, and 166 DFD Doors operating in Japan and four Hot Light Theater Shops, six Fresh Shops, and 12 DFD Doors operating in Canada.

(5)

Includes over 160 McDonald’s test shops located in Louisville and Lexington, Kentucky and the surrounding area as of December 31, 2023.

 

Krispy Kreme, Inc.

Global Hubs

 
 

 

Hubs

 

Fiscal Years Ended

 

December 31, 2023

 

January 1, 2023

 

January 2, 2022

 

(unaudited)

 

 

 

 

U.S.:

 

 

 

 

 

Hot Light Theater Shops (1)

220

 

228

 

234

Doughnut Factories

4

 

4

 

4

Total

224

 

232

 

238

Hubs with Spokes

149

 

133

 

123

Hubs without Spokes

75

 

99

 

115

International:

 

 

 

 

 

Hot Light Theater Shops (1)

30

 

28

 

25

Doughnut Factories

11

 

11

 

11

Total

41

 

39

 

36

Hubs with Spokes

41

 

39

 

36

Market Development:

 

 

 

 

 

Hot Light Theater Shops (1)

118

 

110

 

110

Doughnut Factories

26

 

27

 

27

Total

144

 

137

 

137

Total Hubs

409

 

408

 

411

(1)

Includes only Hot Light Theater Shops and excludes Mini Theaters. A Mini Theater is a Spoke location that produces some doughnuts for itself and also receives doughnuts from another producing location.

 

Krispy Kreme, Inc.

Net Debt and Leverage

(in thousands, except leverage ratio)

 
 

 

As of

 

December 31, 2023

 

January 1, 2023

 

(unaudited)

 

 

Current portion of long-term debt

$

54,631

 

 

$

40,034

 

Long-term debt, less current portion

 

836,615

 

 

 

739,052

 

Total long-term debt, including debt issuance costs

 

891,246

 

 

 

779,086

 

Add back: Debt issuance costs

 

4,371

 

 

 

2,247

 

Total long-term debt, excluding debt issuance costs

 

895,617

 

 

 

781,333

 

Less: Cash and cash equivalents

 

(38,185

)

 

 

(35,371

)

Net debt

$

857,432

 

 

$

745,962

 

Adjusted EBITDA - trailing four quarters

 

211,624

 

 

 

190,729

 

Net leverage ratio

4.1

x

 

3.9

x

 

NASDAQ and NYSE quotes and data are delayed 15 minutes unless indicated otherwise. Market data and exchange information are provided for informational purposes only and is not intended for trading purposes. Neither 24/7 Market News Editors, 247 Market News, or data and content providers shall be liable for any errors or omissions, delays, misquotes or other market information relayed in any press materials. You should Use Realtime data to conduct due diligence before investing or trading, and trading in any stock is risky you could lose all your money.